Spotify said to be No.2 source of revenue for major music labels

Digital music streaming company Spotify is reportedly now the No.2 source of revenue for major music labels. The report comes from Business Insider and cites an anonymous source, who claims that while revenue earned by major labels from Spotify is nowhere near that of iTunes, it has catapulted ahead of competitors since launching in the United States last summer. An estimated 23 million people used Spotify’s streaming music service last month, which is available for free with advertising breaks or at two paid subscription levels that each offer ad-free music streaming. Spotify recently brought its new radio service to its iPhone and iPad app, allowing users to create artist, song or playlist-based streaming radio stations similar to those offered by rival Pandora. The move is seen by some as a potentially significant blow to Pandora, and the company’s stock has taken a hit recently as a result.